CRYPTOCURRENCY 101 DIGITAL ASSET INVESTOR GUIDE - Sarson Funds
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CRYPTOCURRENCY 101
DIGITAL ASSET INVESTOR GUIDE
P R E P A R E D B Y S A R S O N F U N D S , L L C
WWW.SARSONFUNDS.COM | INFO@SARSONFUNDS.COM
WHAT IS Then, in early 2009, an anonymous
programmer or a group of programmers
CRYPTOCURRENCY? under the alias Satoshi Nakamoto
Throughout the 1990’s technology boom, introduced Bitcoin. Bitcoin was the first
there were many attempts at creating a “cryptocurrency”, so named because it
viable digital currency. Some systems didn’t rely on a third party but instead
such as PayPal still survive today while used “cryptography” to secure and
most others such as DigiCash, Flooz and verify transactions as well as to control
Beenz ultimately failed and ceased to the creation of new coins.
exist. There were many di ff erent reasons
for their failures, such as fraud, financial Bitcoin introduced the first widespread
problems and even frictions between application of a computer-based
companies’ employees and their bosses. consensus network wherein all network
participants contributed to the
Notably, all of those systems utilized a validation of each transaction.
“Trusted Third Party” approach, meaning
that the companies behind the currencies Satoshi described it as a ‘peer-to-peer
verified and facilitated all transactions. Due electronic cash system.’ It is completely
to the failures of these companies, the decentralized, meaning there are no
creation of a digital cash system was seen servers involved and no central
as a lost cause for a long while. controlling authority.
CRYPTOCURRENCY 101
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ELIMINATING DOUBLE SPEND
One of the most important problems that
any payment network must solve is the
“double-spending” problem. With paper
money, double-spending isn’t a problem.
Once you hand a paper dollar bill to
someone, there is no risk of you trying to
spend that same dollar again - you don’t
have it anymore!
BLOCKCHAIN TECHNOLOGY A Blockchain is a public ledger that
Blockchain technology eliminates digital records all of the transactions that have
assets' need for a central controlling happened within the network, making the
authority. information available to everyone.
When you send an ACH payment or mail Every transaction is a new entry on the
someone a check, a trusted third party – Blockchain’s public ledger. The entry
Chase Bank, UBS, Wells Fargo, etc – keeps consists of the sender’s and recipient’s
a record of your balance and reduces your “public keys” (wallet addresses) and the
account value by the transaction amount, amount of coins transferred.
ensuring that you don’t spend the same
money twice or spend more than you have. The transaction needs to be validated by
the sender providing their “private key”
In the current system, “trusted” banks are (password) and then confirmed by the
in control of your funds and have all your entire network as to its validity.
personal details on hand.
Once the transaction is confirmed by the
In a decentralized network like Bitcoin, all network as valid, the transaction
account balances and transactions are becomes “immutable” (permanent) and
recorded via a “Blockchain.” that block is added to the blockchain’s
ledger.
CRYPTOCURRENCY 101
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GETTING TO KNOW CRYPTOCURRENCIES
BACKGROUND BEHIND DIGITAL ASSETS
A cryptocurrency is a digital or virtual Essentially, cryptocurrencies are
currency used to store or transfer limited entries in a database that no
value. one can change unless specific
conditions are fulfilled.
Cryptocurrencies are so named
because they use “cryptography,” Cryptocurrency and digital assets
algorithmically encrypted are here. Many investors have
questions about this exciting new
transmissions, to secure and verify
asset class.
transactions as well as to control the
creation of new coins.
Sarson Funds is pleased to provide
this summary overview of digital
assets.
Warm regards,
JOHN R. SARSON JAHON JAMALI
MANAGING MANAGING
PARTNER PARTNER
VISIT US ONLINE AT WWW.SARSONFUNDS.COM FOR MORE RESOURCES.
All investment products are available to accredited and qualified investors only. No bank guarantees.
Not FDIC insured. Past performance does not indicate future performance.
Sarson Funds, LLC is a third party marketing company and does not manage assets or provide investment advice. All investment products
advertised by or referred to by Sarson Funds, LLC are property of their respective owners and are offered under Regulation D by their
respective issuers. All prospective clients must satisfactorily complete investor eligibility and anti-money laundering disclosures before being
referred to any investment sponsor. The official terms and objectives of any strategy mentioned by Sarson Funds can only be conveyed through
each fund’s specific offering documents, including but not limited to its subscription documents, private placement memorandum, and limited
partnership agreement. These documents must be read thoroughly prior to investing. These marketing materials may not reflect any portfolio
that Sarson Funds or any investment sponsor managed or currently manage. Any historical returns, expected returns, or probability projections
may not reflect actual future performance. If you follow these strategies you may lose money, including all money and assets invested. Sarson
Funds is not responsible for errors or omissions.
CRYPTOCURRENCY 101
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COMMON CRYPTOCURRENCIES
THE FIRST AND LARGEST CRYPTOCURRENCY, BITCOIN WAS LAUNCHED IN
BITCOIN 2009 AND HAS A CURRENT MARKET CAP OF $80BILLION. BTC'S GLOBAL
BTC CONSENSUS NETWORK, WHICH IS POWERED BY ITS USERS, REQUIRES NO
CENTRAL AUTHORITY TO OPERATE.
LITECOIN THE ‘DIGITAL SILVER’ COMPARED TO BITCOIN’S ‘DIGITAL GOLD.’ IT WAS
DESIGNED BY RESEARCHERS AT MIT TO BE 4X FASTER AND HAVE 4X TOTAL
LTC NUMBER OF COINS AS BITCOIN. IT IS CURRENTLY THE 5TH LARGEST COIN.
A CRYPTOCURRENCY AND A SMART CONTRACT PLATFORM THAT SUPPORTS
ETHEREUM DECENTRALIZED APPLICATIONS (DAPPS) THROUGH A SCRIPTING LANGUAGE
DIFFERENT FROM BITCOIN'S; WITH ROBUST PLATFORM CAPABILITIES AND
ETH DEEP POCKETED SUPPORT FROM THE ENTERPRISE ETHEREUM ALLIANCE, ITS
$15BILLION + MARKET CAP MAKES IT THE 2ND LARGEST COIN.
A STRONG SOLUTION TO THE BLOCKCHAIN TRILEMMA, POLKADOT ENABLES
POLKADOT INTEROPERABILITY BETWEEN BLOCKCHAINS TO CREATE A MORE
INTERACTIVE AND INCLUSIVE CRYPTO UNIVERSE. THIS TOKEN AND ITS
DOT BLOCKCHAIN AIM TO BUILD A COMPLETELY DECENTRALIZED AND PRIVATE
WEB GOVERNED BY ITS USERS.
A FORK OF BITCOIN THAT IS SUPPORTED BY BITMAIN, THE BIGGEST BITCOIN
BITCOIN CASH MINING COMPANY, AND A MANUFACTURER OF ASICS BITCOIN MINING CHIPS.
ALL BITCOIN HOLDERS WERE GIVEN BITCOIN CASH FOR FREE DURING THE
BCH SPLIT.
CONSIDERED A “SECOND-GENERATION” SMART CONTRACT DECENTRALIZED
EOS OPERATING SYSTEM BOASTING LOWER FEES, FASTER TRANSACTION TIMES
AND USER-FRIENDLY PROGRAMMING LANGUAGES, EOS RAISED $4BILLION IN
EOS A YEARLONG “INITIAL COIN OFFERING” WHICH EXCLUDED RESIDENTS FROM
THE UNITED STATES IN HOPE OF AVOIDING CONFLICT WITH THE SEC.
A SMART CONTRACT PLATFORM THAT HAS MANY OF THE SAME GOALS AS
NEO ETHEREUM, BUT DEVELOPED IN CHINA, WHICH COULD POTENTIALLY GIVE IT
SOME ADVANTAGES DUE TO IMPROVED RELATIONSHIP WITH CHINESE
NEO REGULATORS AND LOCAL BUSINESSES. DUBBED BY SOME AS “CHINESE
ETHEREUM."
CONSIDERED A “SECOND-GENERATION” SMART CONTRACT DECENTRALIZED
OPERATING SYSTEM THAT EVOLVED OUT OF A SCIENTIFIC PHILOSOPHY AND A
CARDANO RESEARCH DRIVEN APPROACH. CARDANO USES A DEMOCRATIC GOVERNANCE
SYSTEM THAT ALLOWS THE PROJECT TO EVOLVE OVER TIME AND
ADA SUSTAINABLY FUND ITSELF.
CRYPTOCURRENCY 101
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QUANTUM COMPUTING &
THE FUTURE OF
BLOCKCHAIN TRANSACTIONAL SECURITY
Will quantum computing accelerate a market drive for the rational use of
one-time pad encryption protocols? We are beginning to witness this drive
today as the widespread adoption of cryptocurrencies and blockchain
technology stimulate the demand for uncrackable cryptographic solutions
for a digital asset fueled economy. Investment opportunities for advanced
digital asset cryptography methods are emerging as a new frontier for
cryptocurrency investors.
Quantum computing's emergent role in driving new cryptographic solutions
has many investors looking for opportunities that provide the security of one-
time pad with transactional feasibility.
One-time pads are unconditionally secure in any computation model, if used
properly. They are based off of cutting edge cryptographic research and
have yet to be broken or show any way of being broken.
Achieving true randomness is essential to incorporating the security of one-
time pad level encryption. Emerging solutions of interest to the digital asset
investor will focus on creating practical applications for the one-time pad as
the next generation of cryptography.
As this new horizon of investment opportunity develops, we believe Crown
Sterling has emerged as the sole provider of one time pad-level encryption
solutions. Learn how Crown Sterling is paving the way for the future of true
data sovereignty, here: www.crownsterling.io
400 B.C. SPARTAN SCYTALE
CRYPTOGRAPHY HISTORICAL TIMELINE
50 B.C. CAESER SHIFT CIPHER
1465 VIGNERE CIPHER
1800 JEFFERSON WHEEL CIPHER
1917 VERNAM STREAM CIPHER / ONE TIME PAD
1920 GERMAN ENIGMA
1976 DATA ENCRYPTION STANDARD (DES)
1977 RSA PUBLIC KEY ENCRYPTION
PRESENT QUANTUM CRYPTOGRAPHYYou can also read
